International Energy Outlook 2011 - EIA

U.S. Energy Information Administration | International Energy Outlook 2011
World energy demand and economic outlook
Investment in the countries of Central and South America is constrained by adverse economic circumstances, and revenues
from commodities exports are not expected to provide the level of government revenue that were seen from 2003 to 2008. The
proximity of the region to the United States and the trade relationships of its national economies with the U.S. economy suggest
that the region’s recovery will be linked, in part, to the pace of the U.S. recovery. Even so, the long-term prospects for Central and
South America remain positive. Most countries in the region have flexible exchange rates, positive trade balances, and relatively
low fiscal deficits and public debts. Regional inflation is lower than it was in the mid-1990s, and a relatively young labor force
supports the region’s economic growth prospects over the next 30 years. Economic growth in Central and South America averages
3.8 percent per year from 2008 to 2035 in the IEO2011 Reference case, as the region benefits from the expected recovery in world
economic growth after 2010, and foreign capital flows are revived.
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